busterbluth

I see what you are saying, and that's probably what they meant, but if you look at the question it says "If SH sells its receivables to the SPE, its results will show ... (b) higher cash, (c) same A/R. In my opinion, the answer is both.

... it's really comparing if they sell versus if they don't sell! Obviously if they don't sell, their cash remains low, and if they sell they get more cash... but anyway, who am I to argue with CFAI :-(.